After three years of positive returns, Bitcoin and other cryptocurrencies have suffered a significant drop in value in 2022. The leading digital asset is down around 65% year-to-date as central banks took strong measures to curb inflation, which negatively impacted high-growth assets like Bitcoin.

In addition, negative developments specific to the cryptocurrency market, such as the collapse of FTX, have further eroded investor confidence in cryptocurrencies, a sentiment that is likely to continue weighing on prices in 2023.

Canaccord Genuity wrote in a note that the outlook for 2023 is "more on the subdued side," as it believes a 2023 recession is highly likely. Graham believes the crypto market will struggle to bounce back and return to 2021 levels in the near term, and anticipates correlations between crypto and equities to "return to elevated levels."